Gold Standard: Forbes Chairman Advocates Gold Standard fixed USD $1500

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Water&Food

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Source: The Street
Date: 01/12/12

Forbes' solution is to use gold in his own version of the gold standard. A "true" gold standard where every U.S. dollar in circulation is backed by gold is literally impossible. The amount of money in circulation is $9.6 trillion, that's counting cash, deposits, traveler's checks, savings and money market deposits. The amount of gold the U.S. holds using a $1,650 gold price is $429 billion. So a true gold standard would require the gold price to hit $5,000 and that the government takes $8 trillion dollars out of circulation or we buy all the bullion in the world, 82,500 tons which would still only equal $4.4 trillion, and cut our money supply in half.

Forbes wants to set the U.S. dollar to a fixed rate in gold, say $1,500, when the price rises above that level the Federal Reserve must raise rates and when it falls below the Fed can loosen monetary policy. "If you can read a speedometer, you can do the gold standard." Forbes said it would take a few months for the economy to transition but it would create "a steady measure of value for the dollar."

Forbes says citizens should be free to carry gold and silver around in their pocket, pay for goods and/or exchange their dollars for gold with the Federal Reserve but that such drastic actions wouldn't be necessary just knowing the dollar price was fixed in a small price range would be all that is needed.
http://www.thestreet.com/story/11374741/1/forbes-fix-the-us-dollar-crisis.html
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The first paragraph you quoted basically said the 1500 mentioned in the second paragraph is too low. They'd have to contract their economy right off the bat.
 
How would they pay for the gold - print more fiat - therefore more gold required. Genie is out of the bottle and won't want to go back.
 
just take the power away from private corporations to control the money supply and put it back into the hands of (the governments of) the people
 
Maybe when the USD devalues (as it should have already) in future as they continue down their path of debt expansion and printing they will be able to maintain that new level but they are dreaming if they can get to $1500... unless they confiscate again
 
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